March 3, 2005
Taiwan's two stock market-listed security leaders Taiwan Secom Co., Ltd. and Taiwan-Sogo Shinkong Security Co., Ltd. are reporting big gains in revenues and profits for January due to the seasonal boost in security business that historically comes with the pre-Lunar New Year season.
Taiwan Secom's "Beware of Thieves Spending Lunar New Year at Your Home" advertising campaign helped raise in one fell swoop the number of its home security clients by thousands to over 20,000 in the months leading up to the Lunar New Year. Its corporate security business has also been enjoying stable growth.
Taiwan Secom reports that its January revenues climbed 13.05% on the year to
NTD 427 million, while its before-tax profits rose 7.27% on the year to
NTD 130 million. It expects its home security operations and new mobile security business to help its first quarter performance outpace that of last year.
Taiwan Secom has been actively promoting new services. In addition to its new bank video monitoring system, it is teaming up with Chunghwa Telecom in order to offer a mobile security service. It has initiated testing of this new mobile system and expects to introduce it in the near future. This service will be provided for automobile security initially and will be extended to the protection of individuals and valuable objects in the future.
Taiwan-Sogo Shinkong Security says that, with the improving housing market, the number of its cooperation projects with home construction companies increased considerably before the Lunar New Year, providing a big boost in revenues. It sales of digital video recorders have also added significantly to its revenues. It expects its profits in January to outpace projections.
Taiwan-Sogo Shinkong Security has taken advantage of the strong position of its parent company Shinkong Group in the real estate market in order to make a big move into the home security market for new homes, and has won a large number of orders from some of Taiwan's more luxurious housing developments as a result.
In addition to the fierce competition in the home security market, these two security companies have also been going head-to-head to win contracts for bank video monitoring systems. Taiwan Secom received orders from Cosmos Bank and Shin Kong Commercial Bank at the end of 2004, while Taiwan-Sogo Shinkong Security recently finalized a deal with an unnamed state-run bank. Industry insiders expect a number of big orders from financial institutions to roll in in the second half of the year, further lifting the revenues and profits of Taiwan's security companies.
(United Daily News)
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